While other MediaPost newsletters and articles remain free to all ... our new Research Intelligencer service is reserved for paid subscribers ...

Subscribe today to gain access to the every Research Intelligencer article we publish as well as the exclusive daily newsletter, full access to The MediaPost Cases, first-look research and daily insights from Joe Mandese, Editor in Chief.

Commentary

My How Time Flies, KSL Media Bankruptcy Case Still Ongoing

Believe it or not, the KSL Media bankruptcy case -- which began six years ago -- is still open.

But the trustee overseeing the case recently filed a massive 600-page “Final
Report” related to the case, signaling that closure may be near. A hearing on the report was held earlier this week in U.S. Bankruptcy Court in California.

The report identifies over 500
unsecured creditors and an array of priority claimants, including lawyers and accountants and other professionals working the case, as well as various governmental tax authorities.

As you can
imagine, the tax claims were paid in full. The unsecured creditors -- including a Who’s Who of media companies like CBS, NBC Universal, Hulu and many others, as well as a whole host of other
vendors -- will be receiving about 33 cents on the dollar.

According to a summary of the Final Report filed with the court, approved disbursements totaled $40.4 million. Total professional
fees approached $20 million.

advertisement

advertisement

The case has been filled with twists and turns. At one point, the Trustee David Gottlieb sued KSL founder Kal Liebowitz and several other senior executives for
gross negligence in U.S. District Court, but the case was tossed.

Gottlieb alleged the agency used client funds earmarked for media spend to run the company. By almost any standard,
that’s considered a no-no.

No word on what Liebowitz is up to these days. He has been keeping a pretty low profile.